Congress changes tax on children’s investment income
Congress has changed the “kiddie tax” – the tax that must be paid on children’s investment income. If any of your planning involves gifts to children, you might want to reconsider your strategy in light of the changes. In the past, the “kiddie tax” provided that if a child under age 14 had investment income above a certain amount – the income was taxed at the parent’s tax rate, not the child’s tax rate (assuming the